There are hundreds of thousands of Self Directed IRA accounts in the United States. In the last several years, the number of Self Directed IRA accounts has grown drastically. The Self Directed IRA LLC “Checkbook Control” Structure has been in use for over 15 years.
The Tax Court and the IRS have approved the use of an entity owned by an IRA to make IRA investments tax-free! The use of a limited liability company (“LLC”) owned by an IRA to make IRA investments has been the entity of choice for tens of thousands of Americans. The Self Directed IRA LLC “Checkbook Control” offers one the ability to use his or her retirement funds to make almost any type of investment on their own without requiring the consent of any custodian.
Limited liability companies (“LLCs”) are a creation of state law. An LLC is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes and a partnership for federal income tax purposes. An LLC offers the limited liability the benefit of a corporation and the single level of taxation of a partnership. The owners, not the entity, are then responsible for the payment of the tax, if any.
Today, all fifty states and the District of Columbia have enacted statutes that provide for the creation and governance of LLCs. In addition, all state statutes allow an IRA to be a member/owner of an LLC.
By using an LLC to make IRA Investments, you, as manager of the LLC, will have the ability to use your retirement funds to make almost any type of investment, including real estate, on their own without requiring the consent of any custodian. Have an investment opportunity, such as real estate or precious metals that you would love to make with your IRA funds? Then the Self Directed IRA LLC is your solution. In addition to the tremendous IRA benefits (tax-free gains, tax deductions, asset protection and estate planning), the Self Directed IRA LLC allows you to invest tax-free in investments that you know and understand quickly and without custodian consent.
Learn how using an LLC to make IRA investments can benefit you from a tax, investment, and asset protection standpoint.